@dac10012 , just for your information
(a) Standard deduction is available ONLY when a full calendar year income is reported/recognized
(b) MFJ with one spouse on a partial year income ( part-year residency ) is not practical and /or allowed.
(c) The tax residency ( i.e. by SPT and/or GreenCard ) is generally for the whole tax year except that the start date of the residency is generally first day of legal presence in the year under consideration with some "ands" , "ifs" and "buts". See this --> Residency starting and ending dates | Internal Revenue Service
Therefore my repeated request to you for her status prior to admission as GC.
(d) Note that as an NRA, one is still taxed by the US on all US sourced / connected income while world income becomes taxable to US as a US person ( citizen/GreenCard/Resident for Tax purposes. Also Tax Treaty benefits are generally not applicable for US person with a US tax-home and on US sourced/connected income.
(e) you posted --"how do we report capital gains and interest and dividend income only earned after the date she got her Green Card and became liable for US income taxes". For US Tax Purposes, NRA taxation is limited to US sourced/connected income ( of any type ) while a US person is taxed on world income. Thus during the NRA period of your spouse all her US sourced income is taxable to US ( absent a Tax Treaty condition/assertion/ limitation ).
Foreign source passive incomes ( capital gain/interest/dividend) are generally effective ( i.e. recognizable/reportable ) on the date they were constructively received by US person ( as part of world income and taxes paid to a foreign tax admin. may be eligible for FTC treatment.
As mentioned above, US sourced passive income is taxable US income whether one is NRA or a US person all the time.
Does this make sense ? Is there more I can do for you ?
